CLARKSVILLE, TN (CLARKSVILLE NOW) – The City Council finalized and approved the city’s FY 2026-27 budget Thursday night with a property tax rate of $1.01, a 9-cent increase from the previous rate of $0.92.
The council nearly approved a 4-cent property tax increase after briefly considering pulling back $3.38 million in sales tax revenue from the Clarksville-Montgomery County School System. The council initially approved the amendment, but after reconsideration they voted it down and approved the final budget.
Two days ago, the City Council approved the first reading of the budget with a 7-6 vote after four previously failed attempts, with a proposed property tax rate of $1.02.
Proposed amendments totaling $725,000 in reductions
Thursday night, Councilwoman Keri Lovato proposed $725,000 in budget cuts, which would have lowered the proposed property tax rate by one penny. “This is a confined amendment that addresses HR, the Street Department and the Police Department,” she said.
Lovato said HR has two new positions that were originally under CPD and the parks and rec department. The amendment removed HR’s new hires, while reinstating the workers in their previous departments.
The amendment also removed $50,000 from the HR department’s budget, as well as deferred some city sidewalk projects and vehicle replacements under the Street Department. In addition, the amendment would move some of savings to CPD for other needed replacement vehicles.
The amendment was separated into three proposals. Councilman Joe Shakeenab moved for the HR amendment to be altered as well. He asked to only leave the $50,000 reduction in the amendment, while letting HR keep the two new positions. The amendment to the amendment was approved.
The $50,000 reduction affecting the HR department was approved 8-5. As for the Street Department amendment, their more than $800,000 reduction was voted down 5-7. The amendment concerning CPD, after being slightly adjusted, was unanimously voted down after further discussion.
Proposal to fund Needmore Road project
Councilman Jerry Haywood proposed funding the Needmore Road widening project. He previously commented the roadway is falling apart. “We just spent $104,000 repaving the intersection of Needmore and Tiny Town. We’re just going to keep spending money repaving when we could save it and widen the road, which needs to be done,” he said.
Lovato asked City of Clarksville CFO Christen Wilcox for clarification if financing the project would increase the proposed tax rate. Wilcox said no it wouldn’t increase the rate because last Monday $200,000 was removed in amendments, and $50,000 had been removed in amendments during Thursday’s meeting.
Wilcox also said the project’s interest rate will fluctuate, and an increase is expected next year and other years to come. Pitts asked Street Department Director David Smith what the current posture of the Needmore Road widening project is. Smith said survey work needs to be done, as well as reappraisal of properties subject to acquisition.
The amendment was voted down 3-10.
Amendment to keep $0.92 property tax rate
Councilwoman Wanda Smith introduced two amendments: one dealing with returning the proposed property tax rate to $0.92, with over $6 million in cuts.
Streetman said the City Council’s role is to determine, as part of the budget, what departments’ spending ability is. “Just having an amendment that is just various cuts seems like a way to leave it at the tax without taking accountability where those cuts come from,” she said.
Smith said departments understand where cuts can be made, while understanding their own needs.
Streetman said her fear is the $6 million reduction would substantially affect the police department and the fire department the most. She also said she doesn’t understand how the amendment is valid, because no cuts are listed.
Smith said the amendment is valid and reiterated letting the department heads decide where cuts need to be made. The amendment to revert back to the $0.92 property tax rate was voted down 3-10.
Future of city-owned golf courses, proposed partnership
Councilman Eric Claunch introduced several amendments, including a proposal to find a third-party partner to help manage the city owned Swan Lake Golf Course.
Claunch said he knows of several other organizations in Clarksville that would love the opportunity to run the golf courses that are in city control. The amendment proposed would have removed 50% of the funding budgeted for the city-owned golf course. “It’s 87% of a penny,” he said.
Councilman Tim Chandler said he’s concerned if the city doesn’t go ahead and fully fund each golf course, then what kind of disarray the courses will go into over the new year. He did say he’s open to an organization coming in and pitching an offer to run the courses, but the legalities have to be worked out.
Pitts said he believes the amendment before the council is a solution looking for a problem. “There is no problem with Swan Lake, there is no problem with that golf course. It is the most popular golf course in our city,” he said.
Pitts said he is open to the idea for Mason Rudolph Golf Course, though.
The amendment involving Swan Lake failed 4-9. Claunch brought forward a similar amendment concerning Mason Rudolph Golf Course. He said the golf course’s budget would be reduced by $166,000, which is a quarter of a penny, he said.
Lovato pointed out amendments previously brought forward concerning the city owned golf courses dealt with the reduction of capital projects dollars, not money out of the operating budget. She then asked Parks and Recreation Director Jennifer Letourneau the effect the amendment would have with $166,000 being removed from Mason Rudolph’s operating budget.
Letourneau said the city wouldn’t be able to operate the golf course, and they would eventually shut it down. The amendment was voted down 3-10.
Proposed cut of 50% to city senior center
Claunch proposed cutting 50% of the city’s budget for the senior citizens center.
“We are currently in litigation, and my understanding is that facility will not be utilized until the earliest being early next year,” he said. “My amendment would be to pull half of the funding, because if it’s not being utilized or operated, why are we spending the money on it?”
Chandler questioned if there is pending litigation, whether the amendment is out of order.
City Attorney Eric Bittner called for the meeting to move into a closed session, citing attorney/client privilege. After discussion, the amendment was ruled in order and the discussion proceeded; however, it was voted down 2-11.
Budget voted down, City Council votes to reconsider
On its first full vote of the night, the second reading of the budget was voted down 5-8.
Lovato, who was on the prevailing side, moved for reconsideration, which passed 11-2. She then asked for a 15-minute recess to go through the failed amendments. The recess was approved.
Upon returning, the council reconsidered several amendments, and Pitts introduced a new one. Here’s a couple that went on to pass.
- Pitts: Reduction of Street Department’s operating budget by $400,000, which ultimately reduced the budget by 1 penny based off previous cuts made. Amendment passed unanimously.
- Streetman: $26,000 reduction of the city’s legal department. Amendment passed 7-6.
Proposal to pull back $3.38 million from CMCSS
Chandler proposed removing $3.38 million in voluntary sales tax that the City gives annually to CMCSS.
“This will reduce our tax rate by 5 cents,” he said. “It is time for us to take action. We’re asking the citizens of Clarksville, that already pay $2.10 tax rate, for their children to go to school, because inside the city, outside the Sheriff’s Department running the jail, we get no service out of the $2.10.
“This was a deal struck back in 1977; that was a whole other ballgame. … That’s double taxation. You are taking money that rightfully belongs to the city, that’s been collected in the city, in the city’s name, that we turn over to the school system, and (the citizens have) already paid. We’re double taxing them. So, a 5-cent reduction brings us to $0.96,” he said.
Pitts said state law requires about $75 million in city sales tax going to CMCSS, and the city gives an additional $3.3 million in voluntary support.
Streetman said she 100% understands where the sponsor of the amendment is coming from. “You are absolutely right, city residents are paying twice, without a doubt. However, as said in the Finance Committee both times when this was brought forward, it was still being looked at to see if we could actually do this or not.”
Streetman said there are still questions whether the agreement was approved through referendum. “There’s still questions that need to be asked,” she said. “Let’s say we vote for this tonight, and we reduce the tax rate by 5 cents to take this $3.38 million out, then we find out, wait we can’t do it. That’s my question.”
Wilcox said if that happened, the City would have to make $3.3 million in additional cuts to department budgets.
CMCSS amendment approved, then rejected
Councilman Jimmy Brown said, “Instead of it all being hit all at one time, I would like to see it step down over a couple years to give them time to make adjustments that they need on the county’s side.” Brown’s amendment was to recapture only $1.35 million instead of the full $3.38 million.
Lovato said she didn’t want to speak about the amendment itself, rather the process unfolding before the City Council. “This has been proposed to the Finance Committee meeting, it has been given to the public twice now, and it’s been deferred twice,” she said. “We have told the public we’re not going to vote on this until August at this time.
“I don’t like this because all of a sudden, we’ve had an opportunity to get input from our constituents, and they deserve a say on how they’re spending their tax dollars.”
The council initially approved the amendment, but after reconsideration, they voted again and rejected it.
Final city budget vote
They then went on to pass the budget with a 9-cent property tax rate by a 7-6 vote. Voting yes were Brian Zacharias, Carlos Peters, Chandler, Travis Holleman, Streetman, Lovato and Pitts. Voting no were Claunch, Ambar Marquis, Smith, Haywood, Brown and Shakeenab.
This article will be updated with additional dialogue from the end of the meeting.
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